NUMBER:
SUBJECT:     USE OF QUALIFIED INFORMATION SYSTEM VENDORS
DATE:           March 02,1998

1.       GENERAL

1. The Purchasing Department has established the following guidelines for the University's participation in the Qualified Information System Vendor (QISV) purchasing program. These guidelines apply to the purchase of automation, computer, and telecommunications products and services and are prepared in accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2157 and Texas Administrative Code, 1 TAC 113.19. The QISV procedures, referred to hereafter as catalogue purchases procedures, represent the University implementation of procurement methods sanctioned by the General Services Commission.

   State agencies that purchase automated information systems with state funds must use the catalogue purchase procedure unless it has been determined that the best value can be obtained through competitive bidding. In that case, open market bidding is still available.

   The following guidelines are mandated for state accounts. These guidelines also apply to local accounts, unless an exception is documented and approved by an appropriate vice president.

   In making catalogue purchases or leases, the University is required by law to evaluate a least three (3) catalogue proposals when possible. If the University does not evaluate at least three catalogue proposals, it must document the reasons before it completes the purchase or lease.

2.       DEFINITIONS

1. (1).Automated information systemî includes:
   • a.the computers on which the information system is automated;

     b.a service related to the automation of the system, including computer software, or the computers; and

     c.a telecommunications apparatus or device that serves as a component of a voice, data, or video communications network for transmitting, switching, routing, multiplexing, modulating, amplifying, or receiving signals on the network.

   (2) Qualified Information Systems Vendor (QISV)î is a vendor that has been approved by the General Service Commission to provide automation, computer and telecommunications products and services from their catalog, which is specifically written for use by state agencies for this purchase method.

   (3) Best Valueî generally means the lowest overall cost of an automated information system but is not limited to this only.(refer to item G for determining best value)

3. PROCEDURES

1. A.   Identify the Need by the Requisitioning Department
   • The college or department requisitioning the goods or services should define the goals of the technology or project at the beginning of the project or technology acquisition process.
   • If possible, a clear statement of expectations for the project or the technology should be included in the specifications that are developed and provided to the catalogue vendors.

   B.  Completion of Required Documents by Requisitioning Department

   • The requisitioning department should clearly and accurately describe the goods/services to be purchased through the submittal of specifications to the purchasing department.
   • When appropriate, a statement should be included about the work to be performed, minimum performance requirements, evaluation factors, specific features, service requirements, delivery dates, and terms.

   C.  Identify the Potential Vendors

   • At least three catalogue vendors should be selected to receive the Request for Offer (RFO). If practical, more can be included. The number of vendors may be limited by the amount of time available to conduct negotiations, and to evaluate their responses. Departments may list any recommended vendors for the RFO on the requisition submitted to purchasing department.
   • Factors which may influence the selection of vendors/products include applicable law, industry reputation, HUB status, recommendations of professional technical consultants (META), user recommendations, and specifications.

   D.  Submission of Initial Responses to Purchasing Department by Vendors

   • The purchasing department will provide selected vendors with a copy of the requirements. This can be done via the mail, or in separate face-to-face meetings with each selected vendor. The contact method will be using the boiler plate of a Request for Offer (RFO) for documentation.
   • If a vendor declines to be included and the total number of vendors drops below three, when time permits another vendor should be selected.
   • It should be clearly explained to vendors that the RFO process is an interactive negotiation process. Each vendor should be provided with the same information including the specifications, deadlines for responses, and other clarifying information.
   • Open dialogue should be conducted with each vendor until the University has a complete understanding of the vendor's offer, and the vendor has a complete understanding of the University's need.
   • The negotiations with vendors should be allowed with all QISVs giving offers if one or more is given the opportunity to change their offer. The process of negotiation should be beneficial to both the University and the vendor. This process will be handled by the purchasing department
   • In addition to (but not in replacement of) the minimum requirements, vendors may propose enhancements or innovations.
   • Everything within each offer should be kept confidential until the award is final. Good judgment should be used in determining what information from any vendor's offer may be revealed to other vendors. NOTE: It is an unethical practice to allow vendors to "auction" their prices. "Auctioning" is when one vendor learns of its competition's prices and changes its offer to go below the competitor.

   E.  Receiving Initial Responses by the Purchasing Department

   • Each vendor should understand that missing the deadline for submission may result in the removal of that vendor from further consideration.
   • The established deadline for the initial responses should rarely be delayed.
   • If it must be changed, the new date should apply to all vendors.

   F.  Evaluate Responses and Negotiate by the Purchasing Department The purchasing      department will:

   • have the vendor clarify missing or confusing information.
   • negotiate for the best prices, products, services and terms.
   • establish the deadline for all vendors to submit their "best and final" offer.

   G.  Determining ìBest Valueî in Procurement Decisions

   1. The University is responsible for determining ìBest Valueî when making procurement decisions related to the catalogue purchasing program. In determining which products or services are in the institution's best interest, the University shall consider the following factors:
      • Installation cost and hardware costs
      • The overall life cycle cost of the requested equipment
      • The estimated cost of employee training and estimated increase in employee productivity
      • The estimated software and maintenance costs
      • Past performance of the vendor's products and customer service
      • Compliance with applicable statewide standards adopted by the Department of Information Resources

      These factors are not the only ones that may be used. Documentation must be attached to the purchase file for clarification of the award.

5.   Blanket Purchase Agreement and Texas Department of Information Resources

• At the discretion of the purchasing department a blanket purchase through the above procedures may be awarded throughout a fiscal year for standard computers used on the campus. Prices can be negotiated with award vendor on a continuing basis to include upgrades, deletions and add-on of equipment.
• The departments have the option to purchase from this blanket purchase order or to obtain computers from a Request for Offer (RFO).
• The University may purchase through the Texas Department of Information Resources (DIR) at any time for automated information system items without going through the RFO procedure.

6.   Dollar Procurement Guidelines

• Catalogue purchase below $2,000 are exempt from the requirement to obtain proposals.
• Catalogue purchases over $2,000 must be processed by the purchasing department and quotes obtained by standard Request for Offer forms.
• There is no upper dollar amount limit on acquisitions that are purchased through the QISV method.

Return to Purchasing Homepage